Assessing my Credit Card Debt

At the end of 2009 my credit card balances were the highest they have ever been, exceeding $40,000. I would like to end 2010 under $20,000.

Total Credit Card Debt as of 3/15/2010: $31,932

By the end of the month I'd like to reduce this to $31,000, and by the end of April I'm hoping to get it down to $29,000. If I can stay on track, I will have reduced my credit card debt by half in 2010.

I should note that approximately $21,000 of my credit card debt is at a 4% rate. A couple years ago I used a balance transfer check at this "rate for life" and invested the funds in rental properties. Another $7,000 is at 0% until the end of June. The remainder includes balances on cards I pay off month-to-month.

Debt Update

Last month I set a goal of paying off my AMEX and Citi Pro Card by the end of March. Thanks to a fat income tax refund, I am happy to say they are paid in full.

I continue to focus on debt reduction as my primary financial goal. Next I will turn to my Citi Driver's Edge card and then on paying my car loan. I'm not ready to set target dates on paying those off. I've got a little project in the works that might suck up some of my cash. More on that soon.

Some of the More Interesting Mystery Shops I have Done

I'm an equal-opportunity mystery shopper: if the money is right, I'll do anything. Yes, I'm a mystery shopping whore. I was thinking last night about some of the more interesting things I have done in the name of shopping:

• A friend and I had to spend two hours drinking at a bar. The purpose was to observe a bartender who was suspected of theft. So that she would let her guard down, my assignment was to drink, drink, drink, but to make frequent trips to the restroom to take notes since I probably wouldn't remember the details the next day when I was entering my report. In case you were curious, I found compelling evidence the bartender put several cash payments in her tip jar instead of the register.
  
• I applied for a home loan using a false SSN that was tied to a person with a certain credit scenario. I was coached extensively on my "story" to the extent I felt like an actor in a movie who had "learned my lines." That shop, which was actually a series of visits and phone calls, paid over $200. The premise here was to see if I was discriminated against because of whatever was on the credit report and from what I was told to say in my story.
  
• I posed as a truck driver getting a physical exam as part of his CDL licensing requirements.
• I became a hearing-impaired traveler to spend the night at a hotel.
• I've eaten breakfast at 3 o'clock in the morning a few times.
• I enjoyed a $300 dinner with my mom for free.
• Several times I had to order a pizza by phone, and then at the end tell the order taker: "By the way, please cancel this order. You have just been mystery shopped. Goodbye."

Most of my shopping is fairly mundane, and I like it that way. Repetition = efficiency. If I can do 15 gas stations (same brand) in one day, I don't have to worry about different scenarios or with constantly switching gears. But, I'm more than happy to embark on a role-playing adventure if I am adequately compensated.

A Week in the Life of a Mystery Shopper

Last week was the first week of unemployment for me this time around. But I kept really busy with mystery shopping.

$792.75 Earnings for the week ending Saturday, March 6th
$174.29 Reimbursements for the week

So what did I do? Well, first, I drove.

A lot.

As in, 1,886 miles... but that includes a trip I needed to take for other reasons in which I combined shopping.

• 41 gas stations
• 10 retailers/banks
  
• and 8 restaurants

Yesterday my earnings were decent but I only worked about 4 hours. Today I am traveling out of state. I will be home this evening, but it will be a long day. If I can keep the pace up, I'll handily beat my March mystery shopping goal of $1,500 and could even pass $2,000. Imagine that... earning $2,000 in one month from mystery shopping.

Have a super fantastic week! I'm working really hard, but I'm loving every minute of it.

March Goals

During February I achieved three of my four monthly goals. March is a transitional month since I am unemployed.

March Goals:

• earn $1,500 from mystery shopping
• spend less than $50 on fuel
• spend less than $150 on food
• reduce credit card debt to $31,000

Those are my financial goals. I am also going to try to really start shedding some pounds.

Reviewing my February Goals

During February I did okay with my goals. I've said before, this blog keeps me accountable.


February Goals vs. Actual:

• Last month I earned $1,046 in mystery shopping income; my goal was $500. SURPASSED!
  
• Last month I spent $250 on food; my goal was to spend $5 per day ($140). BUT, $100 of this was spent on a gift card I have not used. I bought the gift card in response to a bonus offer at Rapid Rewards Dining. I earned 1/2 credit towards a free flight (still trying to snatch a free flight for our cruise). FAILED.
  
• Last month I spent $130 on fuel; my goal was $140. Even better, my employer reimbursed me just over $52 for mileage. SURPASSED!
• I reduced credit card debt to $33,901 (over $4,000 reduction!). My goal was $36,000. SURPASSED!
  

I achieved 3 out of 4 of my February goals! I am especially happy with my spending on fuel. I drove 90 miles round trip to work each day. I cut this expense drastically through mystery shopping. I am equally satisfied with my credit card debt reduction, but the biggest contributor to this was applying my income tax refund toward debt.

My February Income: $9,740

February was a decent month. After three months, I am unemployed again. Truthfully, I hated the new job, so I am glad I'm no longer there. Needless to say, my income will be lower moving forward.

February Income
$2,000 Full-Time Day Job
$1,046 Mystery Shopping*
$1,993 Change in Value of Retirement Accounts (Roth IRA and Rollover IRA)
$4,701 Rental Income*
$9,740 Total Income for February
*note that the mystery shopping income will always vary from the monthly summary amounts I post. Here I report actual payments received (cash basis accounting) whereas my monthly mystery shopping update I report the amount I earned for that month.

My retirement accounts had a nice bounce in February, increasing by just under 5%. Currently all 7 of my rental properties are occupied. I don't expect to have to deal with any vacancies at least until April. Since I won't have the benefit of employment, I need to increase my mystery shopping/merchandising income.